Navellier Top 5 Stocks for February

The following is provided by Navellier with technical comment from South Ocean Management – pls do your own due diligence.

(For this 2022 year, SOM will track the Top 5 Hi-Growth Investments.)

https://navelliergrowth.investorplace.com/

High-Growth Investments

CubeSmart

CubeSmart (CUBE), as we discussed earlier, operates in the self-storage industry. With approximately 1,200 locations in the U.S., CubeSmart is one of the top three providers of self-storage units in the country. It offers everything from temperature-controlled units and personal vehicle storage to warehouse storage solutions for businesses.

At the end of the third quarter 2021, CubeSmart had 706 third-party managed stores, with 47.8 million square feet, and 507 stores, with 35.5 million rentable feet. Its occupancy rate was nearly 95%. And thanks to the “strong performance” across its portfolio, CubeSmart increased its outlook for fiscal year 2021. Full-year earnings per share are forecast to be between $1.30 and $1.31, up from previous estimates for earnings per share between $0.93 to $0.97.

For the fourth quarter, CubeSmart also noted that it expects earnings per share between $0.42 and $0.43. What’s interesting is that the analyst community didn’t increase its estimates after the positive outlook. The consensus estimate only calls for fourth-quarter earnings of $0.24 per share. So, it looks like CubeSmart is gearing up for another quarterly earnings surprise.

CubeSmart is expected to release fourth-quarter and full-year results in late February. In the meantime, CUBE is a Conservative buy below $54.

SOM Technicals:

12-18-21: Closed at 55.79. Trade pressures are up. Volumes are bullish. The next target up is 56.64.

12-31-21: Closed at 56.91. Trade pressures are up. Volumes are  bullish. The next target up is 59.88.

1-7-22: Closed at 51.20. Trade pressures are down. Volumes are now bearish. The next target down is 50.00

1-14-22: Closed at 51.08. Trade pressures are down.  Volumes are bearish. The next target down is 50.00.

1-21-22: Closed at 50.59. Trade pressures are down but rising. volumes are bearish. The next target down is 48.31.

1-29-22: Closed at 59.92. Trade pressures are down but rising. Volumes are now neutral. The next target down is 45.46.

2-5-22: Closed at 51.16. Trade pressures are down into the neutral zone. Volumes are bullish. The next target up is 54.24.

2-12-22: Closed at 50.58. Trade pressures are down. Volumes are bearish. The next target down is 47.82.

2-20-22: Closed at 48.09. Trade pressures are down. Volumes are bearish. The next target down is 45.46.

 

Extra Space Storage

Extra Space Storage (EXR) is another play on the booming self-storage industry. It is actually the second-largest operator of self-storage units in the U.S., with more than 2,000 Extra Space Storage branded locations. It offers a variety storage options, including units for vehicles, RVs and boats, as well as business storage and climate-controlled units.

During the first nine months of 2021, Extra Space Storage achieved “record-setting occupancy and exceptionally strong rental rates.” As a result, earnings jumped 67.6% year-over-year to $4.19 per share, compared to the first nine months of 2020. Funds From Operations (FFO) also rose 32.3% year-over-year to $5.00 per share.

Extra Space Storage is scheduled to release results for its fourth quarter and fiscal year 2021 after the closing bell on February 23. Fourth-quarter earnings are expected to grow 17.6% year-over-year to $1.40 per share, up from $1.19 per share in the same quarter a year ago. Analysts have also increased fourth-quarter estimates over the past three months, so a fifth-straight quarterly earnings surprise is likely.

For its full-year 2021, earnings are forecast to rise 42% year-over-year to $5.27 per share, compared to $3.71 per share in 2020. EXR is a Conservative buy below $208.

SOM Technicals:

08-26-21: Closed at 183.46. Trade pressures are up. Volumes are bullish. The next target up is 210.40, but at resistance here.

09-04-21: Closed at 193.71. Trade pressures are up. Volumes are bullish. Next target up is 200.32.

09-11-21: Closed at 187.05. Trade pressures are down. Volumes are bearish. The next target down is 181.91.

09-18-21: Closed at 180.12. Trade pressures are down. Volumes are bearish. The next target down is 174.02.

09-26-21: Closed at 172.61. Trade pressures are down. Volumes are bearish. The next target down is 166.05.

10-02-21: Closed at 168.94. Trade pressure are down. Volumes are bearish. At the prior low support, 168.65.

10-09-21: Closed at 171.12. Trade pressures are up. Volumes are bullish. Need a close above the 25×5 MA at 178.29.

10-23-21: Closed at 185.93. Trade pressures are up. Volumes are bullish. The next target up is 188.00.

10-30-21: Closed at 197.37. Trade pressures are up. Volumes are bullish. The next target up is 200.82.

11-06-21: Closed at 194.71. Trade pressures are down into the neutral zone. Volumes are neutral. The next target down is 189.64.

11-13-21: Closed at 187.96. Trade pressures are rising up out of the neutral zone. Volumes are bearish. The next target up is the prior high at 203.99.

11-19-21; Closed at 202.09. Trade pressures are up. Volumes are now bearish. 197.58 starts a new move down.

11-28-21: Closed at 198.79. Trade pressures are down. Volumes are bearish. The next target down is 190.39.

12-03-21: Closed at 201.48. Trade pressures are up. Volumes are bullish. The next target up is the prior high at 207.56.

12-10-21: Closed at 208.71. Trade pressures are down into the neutral zone. Volumes are bullish. The next target up is 211.20.

12-17-21: Closed at 215.15. Trade pressures are up. Volumes are bullish. The next target up is 220.42.

12-31-21: Closed at 226.73. Trade pressures are up. Volumes are bullish. The next target up is 254.08.

1-7-22: Closed at 208.45. Trade pressures are down. Volumes are bearish. The next target down is 200.14.

1-14-22: Closed at 203.61. Trade pressures are down. Volumes are bearish. The next target down is 182.40.

1-21-22: Closed at 195.48. Trade pressures are down. Volumes reman bearish. The next target down is 182.40.

1-29-22: Closed at 196.91. Trade pressures are down but rising. Volumes are now bullish. The next target down is 182.40.

2-5-22: Closed at 201.46. Trade pressures are down into the neutral zone. Volumes are bullish. The next target up is 218.15.

2-12-22: Closed at 196.92. Trade pressures are down. Volumes are bearish. The next target down is 193.32.

2-20-22: Closed at 187.46. Trade pressures are down. Volumes are bearish. The next target down is 183.62.

 

Ford Motor Company

Ford Motor Company (F) continues to be one of my top picks for the electric vehicle  revolution. The auto maker has been in business for more than 115 years, and it’s dedicated to staying at the forefront of vehicle evolution. The company’s foray into EVs has been a strategic and spectacular decision, as Ford continues to see increasing demand for its top models.

In fact, Ford announced earlier this week that it has more than 10,000 orders for its E-Transit van, with more than 1,000 orders coming from Walmart. The company recently started production on the vans, and it anticipates the vehicle will be delivered to customers soon. Ford also has approximately 200,000 reservations for the F-150 Lightning – and those reservations are converting to orders.

Ford is boosting its manufacturing capacity in order to keep up with demand for its EVs and other leading models, as it recently had to halt reservations for not only its F-150 Lightning but also its new Maverick pickup truck. Still, Ford anticipates that EV capacity could reach 600,000 vehicles in less than two years, which CEO Jim Farley stated should put Ford as “number-two in electric.”

Ford plans to post fourth-quarter and full-year results after the stock market closes on Thursday, February 3. The current consensus estimate calls for earnings of $0.42 per share on $35.77 billion in revenue, which represents 23.5% year-over-year earnings growth and 7.7% year-over-year revenue growth.

I should add that earnings estimates have been revised steadily higher over the past three months, which bodes well for another quarterly earnings surprise. Ford has posted a whopping 383% earnings surprise on average in the past four quarters. F is a Moderately Aggressive buy below $21.

SOM Technicals:

12-18-21: Closed at 19.77. Trade pressures are down. Volumes are bearish. The next target down is 18.97.

12-31-21: Closed at 20.77. Trade pressures are up but declining. Volumes are bullish. The next target down is 18.97.

1-7-22: Closed at 24.44. Trade pressures are up. Volumes are neutral. The next target up is 26.20.

1-14-22: Closed at 25.19. Trade pressures are up. Volumes are bullish. The next target up is 26.45.

1-21-22: Closed at 20.65. Trade pressures are down. Volumes are bearish. The next target down is 19.27.

1-29-22: Closed at 19.54. Trade pressures are down. Volumes are bearish. The next target down is the 200 day MA at 15.96.

2-5-22: Closed at 17.96. Trade pressures are down. Volumes are neutral. The next target down is the 200 day MA at 16.16.

2-12-22: Closed at 17.56. Trade pressures are down but rising. Volumes are bearish. The next target down is 17.02.

2-20-22: Closed at 18.04. Trade pressures are rising into the neutral zone. Volumes are bullish. The next target up is 20.39.

 

Fortinet, Inc.

Fortinet, Inc. (FTNT) was one of our additions to the High-Growth Investments Buy List in the January Monthly Issue. If you recall, Fortinet operates in the lucrative cybersecurity space, as it provides unified security solutions that can be deployed over digital networks to protect users against malware, spam and network intrusions.

Cybersecurity stepped front and center over the past two years, as data breaches escalated with more folks working remotely. In fact, the IBM Cost of a Data Breach Report 2021 revealed that the average cost of a data breach was between $3.86 million and $4.24 million on an annualized basis in 2021. And the average cost was $1.07 million higher when remote work was involved.

Needless to say, Fortinet’s services and products have been in top demand as individuals and businesses upgrade their security efforts. And we don’t have to wait long to see how much this increase in demand added to the company’s top and bottom lines. Fortinet is scheduled to announce fourth-quarter results after the stock market closes on Thursday, February 3.

The analyst community is looking for earnings of $1.15 per share on $958.28 million in revenue, which is up from earnings of $1.06 per share and revenue of $748 million in the fourth quarter of 2020. Analysts’ earnings estimates have remained steady over the past few months, but Fortinet does have a history of posting positive earnings surprises. FTNT is a Conservative buy below $297.

SOM Technicals:

1-29-22: Closed at 282.16. Trade pressures are down. Volumes are now bullish. A close above 283.47 would signal higher.

2-5-22: Closed at 314.33. Trade pressures are up but declining. Volumes are bullish. The next target up is resistance at 321.78.

2-12-22: Closed at 310.27. Trade pressures are don into the neutral zone. Volumes are now neutral. Support is 290.00 at the 200 day MA. 

2-20-22: Closed at 304.85. Trade pressures are down. Volumes are bearish. The next target down is 288.33.

 

TFI International, Inc.

TFI International, Inc. (TFII) is a Canadian-based provider of transportation and logistics services, with a network that covers more than 80 North American cities. The company boasts more than 560 facilities, more than 80 operating companies and more than 14,100 drivers – all dedicated to providing the logistics and transport services necessary to keep freight moving across North America.

Amidst the supply chain disruptions, port bottlenecks and shortage of truck drivers, TFI International’s services have been top demand. During the first nine months of 2021, the company achieved total revenue of $5.08 billion and adjusted earnings of $349.7 million, which represented 91% year-over-year revenue growth and 69.5% year-over-year earnings growth.

TFI International will report fourth-quarter and full-year 2021 results after the stock market closes on Monday, February 7. Fourth-quarter adjusted earnings are expected to grow 23.5% year-over-year to $1.21 per share, up from $0.98 per share in the fourth quarter of 2020. Full-year 2021 earnings are forecast to increase 43.6% year-over-year to $4.74 per share, compared to $3.30 per share in 2020. TFII is a Moderately Aggressive buy below $103.

SOM Technicals:

1-29-22: Closed at 94.06. Trade pressures are down. volumes are bearish. at support. A close above 95.90 would signal higher.

2-5-22: Closed at 98.33. Trade pressures are down. Volumes are now neutral. The next target up is 101.22.

2-12-22: Closed at 107.07. Trade pressures are up  but rolling over. Volumes are bullish. The next target up is 111.88.

2-20-22: Closed at 102.28. Trade pressures are down. Volumes are now neutral. The next target down is 98.04.